Morning Market Brief 13th April. 2021

The Benchmark KSE100 index have faced rejection from a descending trend line during last trading session and have created a double top on daily chart therefore it's recommended to stay cautious because index is facing resistances around its correction level along with a major resistant region which previously have pushed it towards its 74.6% correction of its last bullish rally. As of now it's expected that index would face major resistance between 45,200pts-45,350pts region and in case of bullish breakout above this region next targets would be 45,500pts and 45,860pts but it's recommended to stay cautious and post trailing stop loss on existing long positions because index seems losing its strength and in case it would not succeed in giving a breakout above 45,200pts in daily chart selling pressure would start increasing. For current trading session its recommended to stay on selling side with strict stop loss of 45,350pts as index would start sliding towards 44,500pts after facing rejection from its major resistant regions. While in case of penetration below 44,500pts once again sentiment would start converging towards bearish side and index would try to expand its current pull back in bearish direction. Overall a volatile session could be witnessed today.

Wapda awards Rs936m contract for civil works of 2nd Rehabilitation Project

Water and Power Development Authority (Wapda) awarded contract worth Rs936.29million for civil work of 2nd Rehabilitation Project of Warsak Hydroelectric Power Station. The contract was signed in a ceremony held here at WAPDA House. General Manager (Hydel) Development Nadeem Iqbal and Chief Executive Officer Iqbal Yunas signed the contract on behalf of Wapda and Technicon Enterprises respectively. Wapda Member (Power) Jamil Akhtar and other senior officers of Wapda were also present on the occasion. Wapda has been vigorously implementing a least-cost energy generation plan to add low-priced hydel electricity to the system. In addition to constructing new projects, Wapda has also been rehabilitating and up-grading its aging hydel power stations, including the Warsak, under the plan. Wapda is executing Second Rehabilitation Project of Warsak Hydel Power Station to regain its generation capacity, Read More...

National Price Monitoring Committee (NPMC) on Monday noted that flour price is significantly higher in the Sindh province as compared to the other provinces and federal capital. The NPMC observed that prices of 20kg wheat flour bags were significantly higher in Sindh (Karachi Rs1,200 & Hyderabad Rs1,230) compared to prices in other provinces (Peshawar Rs964, Quetta Rs960, Islamabad Rs864 and Lahore Rs 860). Finance Minister Hammad Azhar, who was chairing the NPMC meeting, has asked the representative of the Sindh government to explain why prices were higher in Sindh and what measures had been taken to control rising prices of wheat flour. The Sindh government highlighted that higher procurement price set by the province (@ Rs2,000/40kg) was the reason for higher flour prices in Sindh as compared to other provinces and no effective price control strategy had yet been formulated in the Province. Read More...

Workers’ remittances extended their unprecedented streak of above $2 billion for the 10th consecutive month in March. Remittances rose to $2.7 billion in March 2021, 20 per cent higher than last month, and 43 per cent higher than March 2020. Cumulatively during July-Mar FY 21, remittances have risen to $21.5 billion, up by 26 per cent over the same period of FY20. Remittance inflows during Jul-Mar FY21 were mainly sourced from Saudi Arabia ($5.7 billion), United Arab Emirates ($4.5 billion), United Kingdom ($2.9 billion), and the United States ($1.9 billion). Proactive policy measures by the Government and SBP to encourage more inflows through formal channels, limited cross border travel in the face of the COVID-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic, and orderly foreign exchange market conditions are continuing to contribute to this sustained rise in workers’ remittances.Read More...

Central Development Working Party (CDWP) Monday accorded approval to two projects worth Rs 93.28 billion. A CDWP meeting presided over by the Deputy Chairman Planning Commission, Mohammad Jehanzeb Khan, cleared one development project with a cumulative estimated cost of Rs 3.72billiion, and recommended one project worth Rs 89.56bn to the Executive Committee of the National Economic Council (ECNEC) for further consideration. Secretary Planning Hamed Yaqoob Sheikh, senior officials from the Planning Commission and federal ministries/divisions also participated in the meeting, while representatives from provincial governments participated through video conference. Projects related to Agriculture and Food, Climate Change and Physical Planning and Housing were presented in the meeting. A project related to Agriculture and Food, Climate Change presented in the meeting namely “Village Rehabilitation Programme (VRP) under umbrella program of COVID-19 responsive and other natural clematis control program, sub component No.Read More...